Upon the owner's death, can the surviving TOD beneficiary transfer their interest without securing ownership transfer first?

The correct answer is that the surviving Transfer on Death (TOD) beneficiary can indeed transfer their interest without first securing ownership transfer. This is due to the nature of a TOD designation, which allows assets to be transferred directly to the named beneficiary upon the owner's death, bypassing the probate process.

In this context, the TOD beneficiary has a right to the asset immediately upon the death of the owner without the need for additional legal processes to claim ownership. As a result, the beneficiary can transfer their interest as they choose without waiting for formal ownership documentation or approval from a court.

While other options might imply different requirements or processes, they do not align with the established features of a TOD designation whereby the beneficiary's rights are immediately effective upon the owner's death.